Research On The Influencial Factors Of Profitability Of Property Insurance Companies In China

Profitability is the most basic requirement for the survival and development of an enterprise and is also the final reflection of the management level of an enterprise.The management,the shareholders and the creditors of the enterprise are very concerned about the profitability of the enterprise and attach great importance to the analysis of the profit rate and the trend of its change.At the same time,the property insurance company is shouldering the important responsibility for protecting the social and economic development.Only on the basis of strong profitability,property insurance companies may be able to undertake and perform more social functions.The lack of profitability of China's property insurance companies has always plagued China's insurance industry,and it is also a hot topic in the academic field.The property insurance market in China is in a period of rapid change,and various factors affect the profit level of the financial insurance company.Through combing the related literature of the profitability of property insurance companies at home and abroad,this paper summarizes the achievements and defects of the relevant research at the present stage.Through the definition of the concept of profitability,this paper explores the influencing factors and evaluation indexes of the profitability of China's financial insurance companies.On the basis of the analysis of the current situation of the development of China's financial insurance companies and the status of their profits,this paper selects 2009-2016 years of financial data of 43 property insurance companies,the establishment of the overall panel model,panel model of large and medium-sized and small insurance companies and foreign insurance companies,analysis of different types of property insurance company profitability and its related factors.Among them,the total investment return rate has a positive impact on the profitability of all types of financial companies.The comprehensive cost rate and the combined ratio have a negative impact on the profitability of all types of financial insurance companies.Product diversification and average total assets have a positive impact on the profitability of small and foreign financial insurance companies.Asset-liability ratio has a negative impact on the profitability of small and foreign financial insurance companies.The average net assets and the underwriting lever have positive impact on large and medium-sized and Chinese financial insurance companies.The high degree of education has a negative impact on the large and medium-sized financial insurance companies.Market share and reinsurance ratio have no significant impact on the profitability of all types of financial insurance companies.Therefore,property insurance companies should improve their underwriting capacity,capital utilization efficiency,innovation ability,reduce their cost level and compensate expenses to optimize their business status and enhance their profitability.